We use a 14x 2025E PE to value Autohome, which is at a slight discount to other leading internet peers given slower earnings growth, and derive a target price of US$27. We believe a forward PE approach is appropriate given Autohome's track record in earnings, and the PE multiple properly benchmarks the earnings CAGR of Autohome vs. its peers.

Any of these risk factors could cause the shares to deviate from our target price: better-than-expected auto media business, less-than-expected competition and issuance of special dividend, worse-than-expected auto media business, stronger-than-expected competition, and setbacks on new strategies.